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September 29, 2017

Govt to woo micro units with more MUDRA loans

<!– /11440465/Dna_Article_Middle_300x250_BTF –>As part of its aim of integrating micro-enterprises into the formal economy and to provide institutional finance to help them start and grow their businesses, the government is ramping up its outreach to extend bank loans under Micro Units Development Refinance Agency (MUDRA) scheme.To that end, a special ‘MUDRA Promotion Campaign’ is set to be launched in the state where businessmen will be made aware of various schemes as well as digital transactions.Officials say the move is aimed at enabling institutional credit to these entrepreneurs so that they do not have to rely on private moneylenders. So far, Rs 16,700 crore has been advanced to close to 26 lakh businessmen in about two and half years.“The move is a part of better integrating small businessmen with banks so that they can get loans at cheaper rates,” GC Murmu, Additional Secretary for Financial Services in the central Ministry of Finance said on Thursday, while announcing the campaign. Apart from MUDRA schemes, social security schemes will also be highlighted.“We want to double the credit disbursement under MUDRA Scheme. The disbursement in 2016-17 was Rs 1,80,000 crore across the country,” said Murmu.Gujarat’s Expenditure Secretary Milind Torwane said that camps will be conducted at various places in the state to bring about awareness about the schemes, aimed at promoting self employment among the youth, especially those in the rural areas.“We will also showcase success stories of loan beneficiaries in Gujarat. We want others to see how these small loans have brought about a change in the lives of these people,” said Vikramadityasingh Khichi, Field General Manager of Dena Bank, which is the lead bank in Gujarat for State Level Bankers Committee (SLBC) and will spearhead the campaign.The government is betting big on Rupay Cards as well as mobile payment modes like the BHIM app and United Payment Interface (UPI).ABOUT MUDRAThe scheme is aimed at providing financial help to micro-enterprises to help them grow.
A special campaign is to be launched to make businessmen aware of MUDRA.
In last two-and-a-half year Rs 16,700 crore has been extended to 26 lakh businessmen.